Tips for new users picking a Bitcoin exchange

[BitcoinXio]

Since there aren't any posts yet in this sub-topic, I thought I'd start it out with some basic tips for newbies that I wrote up a while ago. These tips cover some basic thoughts on what someone should think about before committing to using a Bitcoin exchange. Of course these are not set in stone and can change based on a person's needs. If you have some tips, please post them below!

1) What country is the exchange located in – knowing your country and where the exchange is based out of is important, as laws and regulations can vary country to country.

2) Despite the exchange being based in your home country or not, they may accept multiple currencies. Make sure to check the fine print; usually exchanges post in their terms of service what currencies they do and do not accept

3) How can bitcoins be purchased? Can you pay with wire transfer, cash, credit cards, PayPal, and so on. Use what works best for you at your convenience.

4) Fees. You will want to make sure that the exchange fees are within reason and aren’t exorbitant compared to the rest of the market.

5) Order book volume. Most exchanges with a decent customer base will publish their order book.

6) Is the exchange transparent? Exchanges that are fully transparent will publish cold storage addresses, or audit information on how to verify their bitcoin reserves.

7) How quickly will you get the bitcoins after purchasing them? This may vary person-to-person, but it’s good to know how long before the bitcoins will be sent to you after purchase.

8) Is anonymity important to you? Staying completely anonymous is difficult, unless you buy locally from someone in cash through a person-to-person marketplace.

9) Security. Knowing the exchange is secure is very important and shouldn’t be over looked.

10) Is the exchange reputable?

[LiteCoinGuy]

good points! i would add the point "Venture Capital Funding". No company would get funding without a deep backgroud check. less risk with this kind of companies.

[BitcoinXio]

good points! i would add the point "Venture Capital Funding". No company would get funding without a deep backgroud check. less risk with this kind of companies.

That's a great point actually, thanks. I've seen many with "private funding" which is fine and dandy, but doesn't mean squat to the rest of the world when it comes to financial security.